Private Enterprises in Shandong Actively Utilize C4 - C10 Fractions

By Lu Yuanli

In recent years, comprehensive utilization of C4, C5, C9 and C10 fractions and their derivatives has become a global trend. In China, PetroChina, Sinopec and other large state-owned petrochemical companies are actively processing and utilizing these resources, and the development opportunity that remains open to private chemical enterprises in this aspect seems very narrow. However, by virtue of their unique technical advantages and flexibility to adapt to market changes, a number of private chemical enterprises in Shandong province, such as Shandong Qilong Chemical Co Ltd, Shandong Qiwanda Petrochemical Co Ltd, Zibo Luhua Hongjin Chemical Co Ltd and Shandong Yuhuang Chemical Co Ltd, are actively utilizing C4 - C10 fractions and rapidly growing. Recently, CCR reporters travelled to Shandong to visit these companies.

1. Shandong Qilong Chemical Co Ltd: A leading C9 processor

Qilong is now one of the enterprises making the fullest use of C9 and ethylene tar resources in China. It is a young, dynamic company, established in January 1998, with more than 600 employees. Currently, it has eight subsidiaries and three joint ventures in Zibo, Foshan, Shanghai, Fushun and other places.
The company is mainly engaged in the deep processing of C9 and ethylene tar resources, from which it produces more than 30 products, such as modified petroleum resin, superplasticizer-grade naphthalene, dispersant-grade methyl naphthalene, methyl cyclopentadiene dimer, dicyclopentadiene diene, C9 fraction thinner, and high-boiling-point series aromatics. Now, the company is China's largest producer of modified petroleum resin and superplasticizer-grade naphthalene. Its leading product - C9 petroleum resin - occupies a 25% to 30% share in the domestic market. And its products are also exported to many countries and regions.
In the face of shrinking resources and increasingly fierce market competition, Qilong has constantly broadened resources, developed the market and actively sought cooperation. For its existing products, the company is working hard to improve yields and reduce both energy consumption and waste emissions. It has also included the utilization of C4 and C5 fractions in its development plans, and its pilot plant using C4 to produce propylene will be put into operation in early 2012.

2.Shandong Qiwanda Petrochemical Co Ltd: Best C4 processor

Qiwanda makes the best comprehensive utilization of C4 fraction in China. The company has China's first 100 000 t/a C4 non-hydrogen aromatization facility. General Manager Wang Zhenwu showed the reporters around the facility. The facility was built in September 2006. Its production technology, named nano-forming C4 aromatization technology, was jointly developed by Qiwangda and Dalian University of Technology. After several years of development, the technology has evolved into two processes: the mixed C4 high-temperature aromatization process for the production of benzene-rich aromatic mixture, and the butane-containing C4 low-temperature aromatization process for the production of low-benzene aromatic mixture. Now, the two processes have been licensed to 25 other companies in China.
The promotion of the nano-forming technology has significantly affected the domestic liquefied gas market. Now, the price of high-olefin gas has grown by RMB400 /t compared to that of low-olefin gas. Thus, the company intends to slow down the promotion of the technology in China and is now beginning to focus on the international market. Recently, it has been negotiating with a U.S. company for technical cooperation.
The nano-forming technology makes use of C4 liquefied gas, a by-product of refineries, to produce benzene-rich aromatic mixture and low-benzene aromatic mixture, while cogenerating crude propane or crude butane and hydrogen-rich dry gas. Superior-grade benzene, superior-grade toluene, mixed xylene and other chemicals can be extracted from benzene-rich aromatic mixture; and the benzene-poor aromatic mixture can be used as blending components of Euro IV and Euro V gasoline. Crude butane can be used for the production of ethylene, propylene and isobutylene; and hydrogen-rich dry gas can be used to produce hydrogen and ethylene or used as fuel gas.

3. Zibo Luhua Hongjin Chemical Co Ltd: Turn C5 fraction into isoprene rubber

Zibo Luhua Hongjin Chemical Co Ltd (briefly called Luhua) started to attract attention in April 2010 when its subsidiary Maoming Luhua Chemical Co Ltd's 15 000 t/a isoprene rubber project was put into production, which was China's first industrial isoprene rubber plant.
In fact, isoprene rubber is just part of the main business of Luhua. The company is one of the largest C5 and C9 processing enterprises. It is headquartered in Zibo, Shandong province, and has three subsidiaries and two branches in various locations: Zibo (Shandong province), Maoming (Guangdong province), Tianjin and Wuhan (Hubei province). The company is mainly engaged in the processing of C5 fraction into a series of products, including polymerization-grade isoprene, C5 petroleum resin, dicyclopentadiene, piperylene and isoprene rubber. In recent years, the company has also started to process C9 fraction into some products, including C9 resin, hydrogenated C9 resin and DMCPD. The company also has Asia's largest tert-butylamine production facility, with a capacity of 15 000 t/a, and occupies more than 60% of the domestic tert-butylamine market.
Deputy General Manager Zhao Xinlai told the reporters that C5 separation, C5 resin and isoprene rubber are Luhua's three core C5 technology. The company leads in the production of piperylene resin and C9-modified C5 resin, which have long been supplied to 3M, Bostik, Henkel, Fuller and other well-known international adhesive producers. The company independently developed and built China's first isoprene rubber plant, and its isoprene rubber quality meet tire makers' requirements.
In Zibo, the reporters also visited the company's 50 000 t/a isoprene rubber plant, where equipment is now being installed and is expected to be put into production in June 2012. General Manager Cui Guangjun said that in the domestic market, isoprene rubber is mainly imported from Russia and Japan. Last year, China imported 14 000 tons of primary isoprene rubber. But this year, the country imported only 4 000 tons, and Luhua produced 10 000 tons. Thus, the impact of the company's production of isoprene rubber on domestic and foreign markets is notable.

4. Shandong Yuhuang Chemical Co Ltd: Largest C5 processor

Shandong Yuhuang Chemical Co Ltd (briefly called Yuhuang) has the largest C5 separation facility in China. On December 15, 2011, the reporters arrived at the company, which is located in Heze, Shandong province. Senior engineer Zhou Jianye gave the reporters a tour of the company's two C5 processing units - which have a combined capacity of 200 000 t/a -and a 120 000 t/a C4-to-olefin unit. The company's main C5 products are polymerization-grade isoprene, piperylene, dicyclopentadiene and piperylene resin. These products occupy more than 68% of the domestic market and are also exported to the United States, Netherlands, Canada, Japan and other countries.
The company was founded in 1986, headquartered in Heze, Shandong province. It now has three production areas and 12 subsidiaries, employing more than 3 800 people, and having fixed assets totaling more than RMB8 billion. The company also stresses the research and development of technology, and has set up cooperation with many universities and research institutes. Its state-of-the-art polyolefin R & D center, which was funded at RMB240 million and covers an area of nearly 14 hectares, was put into use in 2010.
In February 2010, the company put its 100 000 t/a rare earth butadiene rubber project into operation, enabling China to produce rare earth rubber for the first time. In the aspects of fatigue resistance and high temperature performance, the product has obvious advantages over ordinary butadiene rubber and can significantly improve the traction, aging-resistance and wear-resistance of tires, and can cut around 3% of energy consumption therefore. So the price of rare earth butadiene rubber is nearly RMB1 000 /t higher than ordinary butadiene rubber, and the profit margin of the product is very good.
The company also has several construction projects under way now, such as a 200 000 t/a C4-to- propylene unit with the technology from the USA's KBR, and a 300 000 t/a isobutane dehydrogenation unit with the technology from ABB Lummus. Other facilities under construction include a 50 000 t/a ethylene-propylene rubber unit, and a 120 000 t/a dimethyl carbonate unit.